FSC Introduces Credit Scoring Reflecting Small Business Growth Potential... Pilot Program to Begin This Year

Moving Beyond Collateral and Credit History: AI-Based SCB Introduced
Pilot Program Involving Seven Banks with 1.8 Trillion Won in Loans

Financial authorities will introduce a new "Credit Scoring System for Small Business Owners (SCB)" that incorporates future growth potential, aiming to improve financial accessibility for small business owners. Unlike traditional evaluation methods, which focus on collateral or past financial history, the new approach will use data such as sales figures, business districts, and online activity to assess the potential of small businesses and make lending decisions accordingly.

Eokwon Lee, Chairman of the Financial Services Commission, is speaking at the macro-fiscal financial meeting held on April 1, 2026, at the Government Complex Seoul in Jongno-gu, Seoul. Photo by Cho Yongjun

On April 9, the Financial Services Commission held the third meeting of the "Credit Scoring System Reform Task Force (TF)" at the Korea Federation of Banks Hall in Seoul and announced the plan to introduce this new credit scoring system for small business owners.

The SCB to be introduced is an AI-based credit scoring model for small business owners, using non-financial information such as sales, industry type, and business area to assess the future growth potential of small businesses by industry. The SCB rating is calculated by combining the existing personal credit rating (CB) with a "growth rating" that evaluates the business's future prospects. In particular, if a business is assessed as having high growth potential and receives a top rating (such as S1 or S2), their existing credit rating may be upgraded, increasing the likelihood of loan approval, expanding loan limits, and providing preferential interest rates and other benefits.

From the second half of this year, the SCB will be piloted at seven banks, including IBK, Nonghyup, Shinhan, Woori, KB Kookmin, Hana, and Jeju Bank. Based on the results of the pilot program, the Financial Services Commission plans to lead the development and enhancement of differentiated SCB models by credit rating companies (CBs) and financial institutions. Furthermore, starting in the first half of 2028, the Commission will gradually monitor the adoption of SCB within the financial sector and encourage all financial institutions to introduce and operate a credit scoring system for small business owners based on an incentive structure within the same year.

Additionally, an "Integrated Information Center for Small Business Owners (SDB)" will be set up within the Korea Credit Information Services to systematically collect and manage a variety of non-financial data, including sales, employment, and business information, in addition to financial information. This initiative is designed to enable financial institutions to use such data for more sophisticated credit assessments and the development of tailored financial products.

To ensure the successful implementation of the system, relevant regulations will be revised and an incentive structure will be established. The Financial Services Commission plans to introduce an indemnity system so that employees of financial institutions can actively utilize the SCB in small business loan review processes, and to reflect this in performance evaluations. An "SCB Usage Guideline," outlining these incentives, will be distributed. In addition, amendments to the Credit Information Act and revisions to loan review guidelines by business sector are planned to facilitate greater use of SCB in the personal business loan process.

The Financial Services Commission projects that, once the system is established, approximately 700,000 small business owners per year will benefit from additional loans or reduced interest rates. The scale of new loan supply is estimated at about 10.5 trillion won, with the effect of reduced interest rates estimated at approximately 84.5 billion won.

Eokwon Lee, Chairman of the Financial Services Commission, emphasized, "The introduction of SCB marks a starting point for future-oriented finance, shifting away from reliance on collateral or past financial records and moving toward funding based on data and future growth potential."

The Financial Services Commission plans to promptly implement the SCB so that small business owners can quickly feel the policy's effects. By the third quarter of this year, related regulation revisions and system setups will be completed, and SCB-based loan review will be fully launched at the pilot institutions.

Additionally, the Commission announced that it is considering expanding the current pilot program—centered on major commercial banks—to cover secondary financial institutions and policy finance organizations as well.

This content was produced with the assistance of AI translation services.